Appendix 1

Appendix 2

Appendix 3

Publication of the assessment of the risks of the hedge unions

In accordance with Article 34 (2), 5, no. 2, and section 221 (1). Three, in the law. 456 of 18. May 2011 on investment associations, etc., shall be determined as follows :

Scope of application

§ 1. This notice shall apply to hedge funds approved in accordance with section 7 (2). One, in the law on investment associations, etc.

Paragraph 2. If a hedge union is divided into departments, the risk must take place for each department.

Gross Exposure

§ 2. The Management Board shall lay down a framework for the total gross exposures or gross exposure of the unit.

Paragraph 2. For gross exposure, the overall net positions of the hedge unit or of the department shall be as a percentage of total net assets.

§ 3. In a net position of a net position, the instrument of cash, the instrument of cash, the raw material or index, the difference between the sum of the sum of long positions and the sum of the curvlar of short positions in the individual securities, cash-market instrument, the commodity instrument or index, including underlying long and short positions in the securities, the instrument of money instrument, the raw material instrument or the index, which is linked to the use of derivative financial instruments.

Paragraph 2. A long-standing position means a position which provides a win-win at a rate increase, or a rate reduction for the relevant securities, money instrument, raw material, or index. A short position means the numerical value of a position that provides a loss at a spa or a rate reduction for the relevant securities, money instrument, raw material or index.

Paragraph 3. The specification of positions in derivative financial instruments based on securities, cash instruments, raw materials or index, and in which an element is used, the courier shall be multiplied by multiplying the cuticle value of the underlying assets with the delta of the opting.

§ 4. The total net positions of a hedge association or of the department ' s total net positions shall be the sum of :

1) The value of the hedge fund or department's total long net positions in transferable securities, money instruments or index of the unit ' s total net long net positions of the hedge fund or department.

2) Likword means, including currency.

3) The cumulative net positions of the hedge or department in transferable securities, financial instruments, raw material or index of the unit ' s overall short net positions in transferable securities.

Distribution and concentration

§ 5. The Management Board shall determine how a hedge union or department has to distribute its portfolio.

Paragraph 2. The Management Board shall also establish a relevant framework for the percentage distribution.

Paragraph 3. For example, a hedge association or department can distribute its portfolio within the following areas :

1) Value papers, cf. Section 3, paragraph 3. 1, no. 2, in the law on investment associations, etc.

2) Value paper markets.

3) Short and long positions.

4) Securities issued by the same emittent.

5) Anerwell-known ratings on interest-based securities and instruments.

6) Investing in other hedge funds as well as hedge funds.

7) Noted and non-notated securities.

8) Currency.

Standard deviation

§ 6. The Management Board shall establish a framework for a hedge union or department ' s standard deviation of 1, 3 and 5 years respectively.

Sensitive Analysis

§ 7. The Management Board shall ensure that a hedge union or department carries out relevant sensitivity analyses (stress tests).

Paragraph 2. Examples of relevant sensitivity analyses are given in Annex 1.

Additional requirements for the assessment of risks

§ 8. The Management Board shall, on the basis of a hedge or department ' s risk policy and risk profile, identify any relevant potential risks.

Paragraph 2. The Management Board shall at least identify whether a hedge association or department has the risks associated with the following :

1) Interesters, currency, stock, including. derivative instruments based on the same, as well as commodity instruments, due to conditions relating to the market as a whole or due to the relationship to the individual issuer of securities or individual securities (positional hazard).

2) Concentration of the portfolio, for example, in individual securities, securities types or markets (concentration risk).

3) That a counterpart and emittent may go bankrupt and that a counterpart fails to pay or deliver as agreed (credit and counterparty risk).

4) That a position cannot be traded at the right time and price due to low liquidity in the relevant market (cash-risk risk).

5) Management and Management, including IT systems (specific operational risk).

6) Investment for borrowed funds and investment in derivative instruments (gear risk).

§ 9. The Management Board shall lay down appropriate additional objectives and framework for the risks of a hedge or department. If the management board chooses that certain risks should be limited, the Administrative Board may opt out of a target and framework for this.

Paragraph 2. The identification and setting of the objectives and setting the objectives and frameworks, including the framework laid down in accordance with sections 2 and section 5 to 6, must be clearly visible in the risk-breastfeeding of the hedge unidentified unit or department.

Paragraph 3. The Management Board shall ensure that the hedge fund or department ' s methods for the assessment of risks are sufficiently described in business times.

Paragraph 4. The Administrative Board shall regularly assess the relevance of the additional objectives and frameworks.

§ 10. The Management Board may use the examples provided for in Annex 2 in cases where the Board of Directors does not want any unrestricted provision option, cf. Section 9 (1). ONE, TWO. Act.

Use of the VaR models

§ 11. A hedge organization or department which chooses to use the VaR models to meet the additional requirements for the positioning risk of interest, stocks, currency and raw materials shall comply with the requirements of Annex 3.

Guidelines on risk management and the inventories of current risks

§ 12. A hedge fund or branch must comply with the risk frameworks that the Board of Directors of the association has laid down for the hedge fund or the department on the basis of the provisions of the Staff Regulations on investment policy and risk-profile, cf. section 146, paragraph 1. 2, in the law on investment associations, etc.

Paragraph 2. A hedge-union or department shall, to the extent necessary, make current risks to ensure compliance with the established framework.

Paragraph 3. If a hedge association or department one or more of the established frameworks are established, this shall be immediately reported to the Financial supervision, together with a background to the overrun and a description of the way the hedge fund will meet corresponding overruns in the future, cf. section 146, paragraph 1. 3, in the law on investment associations, etc.

Paragraph 4. A hedge union or department named enoted members shall be notified of all overruns of the risk strains laid down in the Staff Regulations or by the Administrative Board, cf. section 146, paragraph 1. 5, in the law on investment associations, etc.

Paragraph 5. A hedge union or department must have reassuring internal procedures relating to the assessment, management and control of risks.

Publication of the internal value and the assessment and publication of risks

§ 13. A hedge union or department must have at least every 14. date the internal value of the hedge unit or of the department, cf. Article 87 (2). One, in the law on investment associations, etc.

Paragraph 2. A hedge fund or department must always provide an internal value at the time of the emission and the solution.

Paragraph 3. A hedge union or department shall state, in the context of its publication, how the internal value is made up in cases where it could not be possible to calculate an internal value on the basis of current prices.

§ 14. A hedge association or department prospectus must contain information on the department ' s risk of departmental health, cf. Thirty-five, paragraph. 1, in the case of investment associations, etc., in the case of any change in the risk frameworks, they shall be notified to the names of the members who are informed of this. Article 87 (2). 2, in the law on investment associations, etc.

Paragraph 2. A hedge-union or department shall be based on the decisions taken in accordance with section 12 (3). 2, publish the risks relating to risks each month.

Paragraph 3. The decisions referred to in paragraph 1 shall be made. 2 must be drawn up in a manageable manner and contain the current inventories, together with the established framework, including appropriate description.

Paragraph 4. If a hedge union or department has significant risks which the management board deselect to set out to be a framework for, this shall be clearly stated in the inventory.

Paragraph 5. If a hedge association or department has a website, information in accordance with paragraph 1 shall be provided. 2 and section 13 shall be published on the home page.

Paragraph 6. If a hedge association or department does not have a website, the notices shall be published in a different way, but at least as a minimum so that all named members shall be notified.

Penalty provisions

§ 15. Inherit of the provisions of section 2 (2). Paragraph 5, section 5. 1-2, section 6, paragraph 6. Paragraph 7, paragraph 7. 1, sections 8-9, section 11, section 12, paragraph 12. 2 and 5, section 13 (3). 2-3 and section 14 (4). 2-6 penalty penalty shall be punished.

Entry into force

§ 16. The announcement shall enter into force on 1. July, 2011.

Paragraph 2. At the same time, publication no. 1468 of 20. December 2005 on the assessment of the risks of hedge associations.

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Appendix 1

Examples of relevant sensitivity analyses

1) If a hedge union or department uses leverage that, as an essential part of the investment strategy, must contribute to a higher yield, the hedge fund or department shall calculate scenarios for the potential total yield of a single maximum and minimum utilisation of the overall gross exposure framework, cf. Section 2 (2). 1, where the value of the total investments fall, for example, 20 pct., 30%. and 50%.

2) If a hedge organization or department as an essential part of the investment strategy wants to have a total card net position, the hedge fund or department will have to calculate scenarios for the potential total yield, where the value of the total net positions of the hedge unit or of the department are increasing, for example, 20 pct., 30%. and 50%.

3) If a hedge organization or department is using an investment strategy with significant concentrations of investment types, the hedge fund or department shall calculate scenarios for the potential total return on the value of the concentrated concentration investments fall, for example, 20 pct., 30%. and 50%.

4) If a hedge union or department uses a 'long/short' strategy in which the correlations between uniform investments are an essential factor, the hedge association or department will have to calculate scenarios for the potential total yield ; where the correlations between long-short investments develop significantly differently than expected.

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Appendix 2

Examples of additional risk eels

1) If a hedge union or department has significant interest rates, for example, if the hedge fund or department has a strategy on speculation on the market interest, the board shall, in accordance with paragraph 9 (1). 1, establish the target and framework of the overall interest rate risk, which is linked to positions in the unit of the hedge unit or department, including the interest rate risk of payments linked to the use of derivative financial instruments.

Where the inventory is based on the principles of the Finance-7 announcement of capital coverage, the overall interest rate risk shall be calculated on the basis of the sum of the changes to the curvings of the unit or department ' s positions in debt securities and cash instruments, including the change in the present value of the payments, which are linked to the use of derivative financial instruments at a rate of one percentage point estiction. In addition, the interest rate must be collected for each currency. In the calculation of the overall interest rate, the numerical value of the interest rate of the interest rate shall be summed up by the individual currencies. The decision may be based on the duration and modification of the duration calculated on the basis of the rules laid down in point. 3 of Annex 2 to the Finance-synet notice of capital coverage.

2) If a hedge union or department has significant interest-rate risk, for example, if the hedge fund or department has a 'fixed arbitrage' strategy, then seeking to exploit imbalances in the price formation of interest-bearing papers is sought, speculators in the interest rate voltage between debt securities shall be required by the Management Board in accordance with paragraph 9 (3). 1, establish a target and framework for the overall interest rate risk associated with the position of the hedge fund or department portfolios, including the risk of payments associated with the use of derivative financial instruments.

The decision may, for example, be made on the basis of the sum of the changes to the liquidity of the hedge funds or department positions in bonds and money instruments, including the change in the present value of payments linked to the use of derivative financial instruments, respectively, by means of a confinement and extension of the interest rate voltage between the purchased and sold, measured in the difference between the effective interest rate, for example 10 basic points.

3) If a hedge union or department has a significant correlation risk, for example if the hedge fund or department has a 'market neutral' strategy focusing on a low correlation in relation to the market, the Management Board shall : compliance with section 9 (3). 1, set the target and framework for the overall correlation risk, including : the correlation risk associated with the use of derived instruments.

The correlation risk may, for example, be calculated by calculating the correlation between the total yield of the portfolio and the yield of a relevant benchmark.

4) If a hedge union or department has a significant currency risk, the Management Board shall, in accordance with paragraph 9 (3), shall be required to comply with Section 9. 1, set targets and framework for this.

For example, the Valutarisiko can be opted through the value dictator 1, which indicates the largest sum of the short and long-term currency positions of the hedge union to be calculated according to Annex 6 to the Financial Regulation's notice on capital coverage.

5) If a hedge union or department has major equity risk, for example, if the hedge fund or department has a 'equity long/short' strategy, and thus substantially invest in shares, the Management Board shall, in accordance with paragraph 9 (3), shall be required to comply with Section 9 (3). 1, set the target and framework for the general stock risk, including : the risk linked to the use of derivative instruments.

The risk of risk could, for example, be done by using beta. Beta is made up as the covariance between the return of the portfolio and a relevant market yield divided by the variance on the market yield.

6) If a hedge union or department has significant risk-taking, for example, if the hedge fund or department has a 'equity long/short' strategy in which the long and short positions are substantially comprised of options, the Management Board shall be required to : compliance with section 9 (3). 1, set targets and framework for this.

For example, the risk of exposure can be done through delta and vega.

7) If a hedge union or department has a significant counterparty risk, such as the hedge fund or department largely deals with securities traded in OTC, the Management Board shall, in accordance with paragraph 9 (2), shall be required to act in accordance with section 9 (2). 1, set the target and framework for the counterparty risk.

The counterparty risk may, for example, be shown as the value associated with the use of securities, including derivative instruments that are traded on the OTC. This value must be done as the positive market value of the instrument with a supplement to the potential future debts. The supplement shall be made in accordance with Annex 1 to the notice on the use of derived financial instruments by the creator and innovation associations, of specialised associations, and innovation associations.

Has a hedge union or department entered into a network agreement that meets the conditions for netting under section 58h and 58i, in the law on securities trading, the value of securities with negative market value may be offset by the value of : transferable securities with a positive market value with the same counterparty in the calculation of the counterparty risk in accordance with the subaverage section above.

After the maturity assessment described above, deductions may be deductible in the form of securities and monetary archangel instruments that may be included in the wealth of the hedge or department ' s assets.

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Appendix 3

Requirements for the use of the VaR models

The requirements for the application of the VaR models, including one or more of the allocation of the VaR models, are based on similar rules, such as the financial institution ' s use of internal models for the balance of deposits with positioning hazards ; for capital coverage. The Financial Authority ' s financial institutions shall provide general requirements for internal models to be used to balance positions with a positioning risk.

The VaR models may only be used if the hedge fund complies with the following requirements.

I) Qualitative requirements

The model / models of the heathens can only be used for the calculation of positioning risks if the hedge risk management and controls of the hedge unit are adequate and implemented in a reassuring manner. This means, inter alia, that the following qualitative requirements must be met :

(a) The model / models must be closely integrated into the day-to-day risk management of the hedge unit and must form the basis for reporting risks to the Management Board and Management Board of the hedge fund or investment management company.

b) The Pagans Association must have a risk control function that reports directly to the Executive Board of the hedge fund or investment management company. The risk control function shall be responsible for designing, updating and implementing the hedge risk management systems, including the VaR models. The utility must prepare and analyse reporting on the results of the model's / models, including the reporting of compliance with the requirements laid down in instructions and so on.

(c) The Management Board of the Hedgeunion and Management Board of the hedge fund or investment management company must be active in the risk control process and the daily reports of the risk control function must be dealt with at a level of management that has sufficient powers to be able to : reduce the positions and the risks of the hedge unidentified unit or department.

(d) The pagan association must have sufficient qualified staff.

(e) The Hedgeway must establish control procedures to ensure that the unit ' s written instructions and procedures relating to the use of the model / models are complied with and monitored.

(f) The Hedgeing Association must have sufficient evidence that the model / models have historically calculated the risks of the hedge unit or department's risks with a reasonable accuracy.

g) The Pagans Association must carry out stress tests and the results of which must be reviewed by the other management or investment management company. The results of tests carried out must be reflected in the instructions and limits set by the Management Board and the Governing Board or the investment management company.

(h) The audit shall carry out independent reviews of the model / models and their use.

i) The Hedgeway must at least once annually carry out an annual study of the model / models and risk management as a whole, which at least involves an investigation into :

1) whether the documentation of the model / models, risk management and the organizational function and tasks of the risk control function are adequate ;

2) how market risks calculated by model / models are integrated into the day-to-day risk management and whether management reporting is complete,

3) the procedures for the approval of the risk-recovery and valuation methods,

4) the market risks covered by the risk-vehicle methods and the assessment of any major changes to the risk-vehicle methods,

5) whether the decision of the unit or department ' s positions is correct and complete, whether calculated volatility and correlations are accurate, and whether the calculation and calculation of risk-sensitive units are accurate,

6) the control process used by the hedge fund in the assessment of whether the information sources used in the model / models are consistent, current and reliable, and whether such information sources are independent, and

7) The procedures for the preparation of the back tests carried out in order to assess the accuracy of the model / modelling.

II) Quantitative requirements

The model / models of the heathens shall, as a minimum, apply the following quantitative criteria for the calculation of positioning risks :

(a) Calculation of the potential risk of the hedge unit or of the department on a minimum daily basis.

(b) A 99% icon-confidensinterval.

c) corresponding to 10 days.

(d) Effective observation period of at least one year, unless a shorter observation period is justified as a result of a significant change in price volatility.

e) Minimum quarterly update of correlations, volatility, etc.

III) Calculation of general risk

If the hedge fund uses the VaR models, the overall risk represents the maximum amount of the following values :

a) general risk calculated for yesterday's positions.

b) the average of general risk calculated for the last 60 working days.

IV) Risk factors

The model / models must take into account an adequate number of risk factors depending on the level of activity or department of activity in the respective markets, including essential risks related to options and option-like positions. The following minimum requirements must be complied with :

(a) In the case of interest rates, the model shall use a number of risk factors corresponding to interest in each currency in which the hedge fund or department has interest-sensitive positions. The Pagans Association must brighteness with the use of generally accepted practices. In the most significant currencies and on the main markets, the purification friend must be divided into at least six maturity segments in order to catch differences in volatility along the rate of dry cleaners. The model must also capture the risk that the correlation between different excaste curves is not complete.

(b) For exchange rate risks, the model shall use the risk factors corresponding to the individual foreign currencies, the hedge association or the department have positions in.

c) For stock hazards, the model must use at least one particular risk factor for each of the stock markets where the hedge fund or department has positions. The heathen association can use empirical correlations within the risk categories and across risk categories, if the model / models of the hedge organisations are well-functioning and are implemented in a reassuring manner.

V) Calculation of specific risk

The heathen association can use the VaR models to calculate specific risk of shares and debt instruments. The models must be in addition to the requirements of the product. IV shall meet the following :

a) Preparing the historical price volatility of the portfolio.

b) Take height of the concentration expressed as size and changes in the portfolios composition.

c) Be robust to changes in prerequisites.

(d) Validate, through the back tests, to assess the accuracy of the specific risk. If the back-tests are carried out on the basis of appropriate subportfolios, these must be chosen consistently.

If a hedge union uses the VaR models in accordance with the points (a)-d) to calculate the specific risk, the specific risk shall be made for each risk category, i.e. shares or sub-portfolios of those products which pose a specific risk.

If a specific risk to sub-portfolios are to be made in the hedge fund or department, the sub-portfolios shall be determined in a consistent manner

The pagan association shall not be able to calculate specific calculation of specific risks as indicated above, provided that the model / models of the hedge unit (s) is in line with the agreed international standards and to take into account the risk of : unforeseen events and non-compliance ("event and default risk") in the case of its shares and debt instruments.

We) Back-tests

The heathen association must verify the accuracy and results of the model by conducting back-tests. Back-tests are performed by performing the daily potential risk of loss that is calculated by using the hedge union model for the unit of hedge or department's daily end positions, in conjunction with the daily change in the portfolio value of the end of the following day. The heathen association must be able to perform back-tests on the basis of both factual and hypothetical changes in the portfolio value.

Back-tests on the basis of hypothetical changes in the portfolio value are carried out by consecuting the portfolio ' s daily end-value and during the assumption of unchanged positions with its value at the end of the following day, i.e. that is ignored by the trades made on the following day. Back-tests on the basis of actual changes in the portfolio value are done by compartying the portfolio's daily end-value with the end value of the hedge association or department's portfolio on the following day, i.e. account shall be taken of trades made in the following day. An overshoot is a daily change in the value of the portfolio, which exceeds the associated daily potential risk that is calculated by the use of the hedge model / models.

If the model / models of the hedge unit has many overruns, indicating that it is not sufficiently precise, the Financial Authority shall withdraw approval or place the hedge fund to take the necessary steps to ensure that : The model / models are improved. The Pagans Association must take appropriate measures to improve its back-testing if they are considered to be inadequate.